OREANDA-NEWS. December 23, 2014. The “Business Barometer 2015” survey conducted by SEB in October and November revealed that the optimism of enterprises in Parnu County with respect to significant turnover growth has declined compared to last year, even though export prospects are considered good generally.

Enterprises predicting a turnover increase of over 15 per cent next year were classified as optimistic. Whereas the results of the survey conducted among Estonia’s small and medium-size enterprises (SME) indicate a decline in the optimism of Estonia’s entrepreneurial circles, from 25 to 20 per cent, the drop was even more noticeable among enterprises in Parnu County, from 33 to 17 per cent. County-wise, entrepreneurs in Harju County continue to be the most optimistic.

In terms of sectors, an optimistic position is being maintained by the retail trade and industrial sectors, joined also by the construction sector, which ranked among the most pessimistic sectors last year.

“Today, enterprises are more cautious when it comes to the future. This is a response of the business environment to a situation where the European economy is looking for a new position of equilibrium ,” said Tiina Ormisson, Regional Director for SEB’s Western Region.

Activity on foreign markets continues, whereas investments plans have dried up
Year on year, Parnu County entrepreneurs’ plans to invest have dropped markedly. Whereas 41 per cent were planning investments of over 30 000 euros for 2014, just 41 per cent are planning that level of input in 2015. However, Estonia continues to offer examples of actively investing entrepreneurial areas, which include Ida-Viru and Jarva Counties for the second year in a row, with every fifth enterprise planning investments. Readiness to invest is lowest among enterprises in Valga County, where investments are being planned by one in ten enterprises only.
Entrepreneurs in Parnu County continue to estimate that the export outlook is good, although the proportion of enterprises planning to enter new markets or expand on existing export markets has dropped slightly (from 33 to 30 per cent year on year).

“Since the survey did not encompass the large enterprises in the area, it is advisable to interpret the slightly lower export outlook for Parnu County as mostly indicative. We were delighted to note that enterprises in our area rank 2nd in Estonia in terms of their plans to conquer new markets, and hopefully, when the European economy returns to growth in 2015, enterprises in Parnu will be able to realise their potential in full,” noted Ormisson.

Compared to last year, fewer employees are being recruited, with the focus on innovation
Next year, the responding enterprises are planning to create almost 1,500 new jobs, which is an unexpectedly high figure considering the current economic situation. In Parnu County, 22 per cent of enterprises are planning to recruit new employees next year, which is similar to the Estonian average (23 per cent). Last year, 30 per cent of entrepreneurs in Parnu County were planning to create new jobs. The most active sectors where jobs are created in Parnu County are construction, industry, and accommodation and catering. Only 4 per cent of enterprises, in both Estonia and in Parnu County, foresee a decrease in the number of employees.

The number of enterprises in Estonia planning innovation (innovative activities are considered to include product or service development, training employees, reviewing one’s business model or other development activities) has risen from 59 to 73 per cent, with the innovation readiness indicators of enterprises in Parnu being some of the highest in the country (ranking among the top five counties), as much as 75%.